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Washington 19, Us 19, Indiana 19, California 17, U.s. 11, Arizona 10, Virginia 10, Florida 7, Ben Bernanke 5, New York 5, America 5, Chrysler 5, Google 4, Jimmy Johnson 4, Boehner 4, John Boehner 4, David Asman 4, Charles Payne 4, Obama 4, D.c. 4,
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  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    February 28, 2013
    11:00 - 1:00pm EST  

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the highlight reel is about about fracking. rolg it. the colorado governor wants to sue cities that ban fracking. >> i like how he did drink the fracking fluid. did he light it to make a flaming shot from it? >> it's literally more than seven empire state buildings below water. seven buildings below water. >> cities can ban recreational use of pot, but they have to do fracking? >> i want state governors to get out there and allow them to get what is ours? liz, i got to ask you a question. you seemed negative there on
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allowing america to go get what we own. >> no, i'm -- listen, i don't like big government stomping on little cities threatening them with lawsuits. that's what i didn't like. i'm a small government person, i am. >> what? big state government -- >> he's threatening -- the governor is threatening to sue his city. that's what is at issue. >> all right, liz. are you back tomorrow? >> i don't know. probably not. [laughter] >> do you or do you not favor fracking? >> i support -- yes, i support it in a safe way. >> you live in new york? >> yes, i do. >> urban new york? >> yes. what's the point? >> governor cuomo is delaying the rules on fracking. >> unfortunate. >> we're out of time. thank you, charles, great having you. dagen, connell, to you. connell: what a point to end on. have a great day. dagen: i'm dagen. connell: stock market is toying
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with a new all-time high, but speaker boehner is coming up this hour from washington, and he and others ignore on wall street. dagen: chrysler's chief in indiana where the auto maker puts workers to work. connell: pope's last call traveling to the new residence assed -- as the church gets a new leader. dagen: google versus grandma. how kids turn to the search engine rather than the grandparents. maybe the grandmothers don't want to talk to the kids. look it google, i don't know. >> grandparents are so special. okay, let's start off with what we see in the market. we have to note we moved to a new annual high of 14104. we see the dow right now pulling back a little. our gdp number is digital at best, up one-tenth of 1%. our weekly jobless claims better
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than expected. the dollar is stronger which could pressure things. the market is mixed. when i think of the market, i think about groupon and jcpenney selling off in a big way. the rest are flat at the moment. back to you. dagen: thank you so much, nicole. connell: automatic budget cuts kick in tomorrow, and at this point, there's no sign at all of a deal. connell: rich edson pulled out binoculars, can you see one down the road? hey, rich, he's on capitol hill. >> there could be, but for now, nothing going. a couple votes in the u.s. senate. a democratic vote to replace cuts in ten years, but the pay fors and cuts take a decade, including a 30% minimum tax rate for income amounts of over $5 million. as a republican plan, allows flexibility for the president to go and fill in the spending cuts from elsewhere in the budget. neither proposal will pass. the president meets with congressional leaders tomorrow
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at the white house. the rest of congress out at that point when spending cuts, automatic spending cuts begin tomorrow. leaders skeptical saying it's just a foe toll opportunity. -- photo opportunity. no deal, but voting is this afternoon. dagen: thank you. as we edge closer to the deadline, the impact of the cuts on the economy, on the market, could they be more drastic than investors bet on? to break it down, a professor at the international business schools, jeremy hills in studio with me, managing director at tf marketing advisers. katherine, will the impact on the economy, an economy only growing one-tenth of a percent, will it be greater than what bet right now? >> i think it will be greater, and, first, i think we have to look at that fourth quarter data for the gdp. about a one percentage point
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cult from what growth might have been because of the expectations of the defense cut. the first and second quarter, macroeconomics suggest growth over the whole year is a half percentage point lower, by most of that decline happens in the first half when the spending cuts hit. that will worsen expectations. some say it's not going to impact at all, and, in fact, it's going to be concentrated in the first half of the year, and that's going to make everybody feel bad. i also think that when we look at the decomposition by regions, one of the things that the politicians, perhaps, are not paying attention to is that 20% of the spending in the washington, d.c. metro area is associated with the defense and their contractors so that they're biting the hand that feeds in their neighborhood.
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it will be interesting to see whether or not the politicians really see the impact on the local economies. so far, of course, washington, d.c. and maryland and virginia have tended to have much lower unemployment rates, typically virginia and maryland, and that's going to change. dagen: in a hot housing market compared to the rest of the nation in many ways. >> right, right. dagen: jeremy, when do we begin cutting then? it's never going to be easy peasy. there's going to be an impact. why not now? are we already feeling the impact of the ballooning deficits on the economy in terms of a drag? >> we don't think risk markets sell off right away when we go into sequestering; however, you have to consider the fact that sequesterathion is not great policy. what's a worse policy is raising taxes. as katherine said, there's
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states, maryland, virginia, they are receiving 20% of their state gdp from federal government spending. what's disappointing, i think, for markets is the fact that politicians can't seem to get together and come up with a cohesive plan. we talk about this all the time in the firm, and what we like to see is representative ryan and obama together in a room, only fed airline food for 5 -- a day. they will have a good plan. dagen: not even a day, four hours on that. katherine, final word. this week, the word from ben bernanke at least in the short run, the federal rereceiver -- preserves spending in place. isn't now a good time to cut? can the economy handle spending cuts austerity there, and then, also, the federal reserve removing that? i mean, can we handle it hand in hand or take higher interest rates to force something in dc? >> well, we have to recognize
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that the sequesteration cuts are narrow and do not provide a down payment on a path to fiscal stainability. the cuts are indiscriminate, and if anything, they undermind the capacity of the economy to grow in the long term underminding our capacity to work our way out of the dealt that we have, so, you know, this is the worst approach to coming to a sustainable path. it does nothing to deal with the medicare/medicaid situation, which, frankly, is the basic problem with the deficits and with our debt profile, so this does nothing to help us in the long term. it does nothing to help, really, to help us with the deficit and the debt. it makes no sense at all. dagen: katherine, thank you so much. to add to that, that's the reason the sequester cuts were designed that way because they were ridiculous and it was that politicians wouldn't allow it to happen. thank you so much. welcome back any time.
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connell: next guest says we've been here for four straight years, and the government and the united states of america failed to enact a budget, and it was written about this morning in the editorial page at the "wall street journal," and is now in the studio. like living in another world, dan? >> alternative universe. connell: that's it. so, now what? >> now we go to the sequester and the meeting at the white house tomorrow between obama and the congressional leaders. of course, obama is waiting until after the sequester to take effect to meet with them, not before, not normally the way you do politics in washington. i don't think anything's going to come of this. i believe though,ing that, saying that the sequester is indiscriminant across the board and would damage the economy, i think that's overstating the effect of what's going to happen the bureaucracies and the president have within their power to distribute that sequester in ways that will have, i think, a minimal impact on the economy.
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$85 billion across the entire breath of the federal government is not that much. connell: right. >> it is not necessary to fire and furlough air traffic controllers. there are -- you don't think that the managers of the departments are actually going to take their own people and through them out into the street? they have many other ways they can accomplish these sequester cuts. dagen: all what part -- all part of what you wrote about the universe, a political tactic, but president obamaments to raise revenue -- obama wants to raise revenue, and his world reinvolves around public spending and what you say today. >> that's right. barack obama does not want to cut federal spending because he believes that federal spending grows the economy. this famous thing called the multiplier effect. if you spend a dollar, you get a dollar and a half or two dollars of growth. if you spend a trillion dollars, you should get upwards of 2.5
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trillion dollars of growth. there's -- over the past four years, obama's budgets spent over $12 trillion. we're going to have a growth rate this year of 1.4%. dagen: barely growing. >> no evidence whatsoever all this federal spending is producing economic growth. give -- connell: give us a prediction how it ends if tomorrow's deadline, forget about it, the sequester goes into effect, but then you'll get another deadline, government shut down is the next conversation. >> i don't think we'll get a government shut down. one point, connell, if that sequester takes effect, i think the result is positive in the sense it shows that the united states government, unlike all of the other western governments, can reduce its public spending, and i think the effect will be distributed widely enough that it won't be deeply felt in the economy, and it'll be a down payment on doing more of these sorts of thing suggested, more serious reconstruction of the federal budget.
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connell: thank you, dan. dagen: read dan's column. it's a history lesson, incredibly geniusly written history lesson. thank you very much. connell: chrysler's chief traveling to indiana today where the auto maker puts americans back to work. dagen: the pope is on his way, taking off from vatican city. that is a live shot of the pope in that bird, in that helicopter, heading to the southern part of rome, again, leaving vatican city. historic. connell: absolutely. first pope resigning in 600 years. we wait to hear from the speaker of the house, john boehner, appearing on capitol hill to talk about, well, what we talked about, all the budget cuts, but, first, here's what former mayor had to say last night about it on hannity. >> if you can't cut somewhere between 1.2 and 2.2% from any federal program, you should be fired for not being able to
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figure out how to run an efficient program.
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connell: breaking news, live pictures in of pope benedict inside that hell comet -- helicopter flying from the vatican to the residence and retreat located just south of rome. lost the shot for a second, but the pope is headed to the retreat for an unspecified amount of time before they go to the vatican. dagen: you joked about the shoes, and i don't think he takes them with him. i think they get left behind. connell: not wearing one of the red shoes anymore. dagen: very sassy. chrysler ceo, minutes away -- speaking of italian fellows, announcing new investment and jobs to boost manufacturing in indiana. connell: jeff live in the chrysler event in indiana. jeff? >> they have to crush the ring
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too, by the way. it's a side point. i have a former catholic with me, the governor of indiana, in awe unique position. look at this, by the way, behind us. big news for chrysler, and you're hearing this is creation of what? >> the largest transmission manufacturing plant in the world right here in indiana, just proving, again, when it comes to manufacturing, indiana's open for business. >> that is big news. particularly, since you took over as in the state house, i got to ask you, though, you voted for sequester. you're in a unique position now, a state governor in the congress when the sequester was approved. the white house says you'll get -- well, first of all, did you think it would come to this? >> we hope it wouldn't. the purpose was to guarantee for any increase in the debt ceiling, there's dollar for dollar cuts of some type. i spoke to the president monday in washington, d.c., and there's any number of better ways to do that, and --
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>> dollar for dollar? >> i think, llok, $16 trillion and more of national debt, it's important that washington, d.c. take steps to put the fiscal house in order. like we did here in indiana, if i say, you know, one of the reasons why you see an investment is going to create more than 1200 jobs here because indiana has our fiscal house in order. we lived within our means, lowering taxes, promoting economic growth. >> trying to lower taxes more. >> we are. i think we have such a strong balance sheet in the state that we have an opportunity to invest in roads and schools and still lower the personal income tax rate by 10%. we're working hard to bring that about. >> i got to ask about medicaid expansion, holding the line, governor christie and governor scott in florida will go ahead and take the federal dollars. you and governor walker in wisconsin and governor perry in texas hold the line saying we're not doing this. tell me why. >> let me say i really believe
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that -- that medicaid is a deeply flawed system in its traditional format. while we'll ensure everybody eligible to be enrolled is covered, that could be some 9 # 0,000, we're not pursuing an expansion of the traditional medicaid. >> costs hundreds of millions of dollars. >> well, there's no question, but what we have in indiana is probably the most innovative consumer-driven health care alternative plan inspect country. it's called the healthy indiana plan. what we've said to washington, d.c. is, look, we're not interested in expanding traditional medicaid, but we're seeking the opportunity to renew our healthy indiana plan and make any discussion of expanding medicaid predicated on being able to do it in a way that's innovative, in a way that's consumer driven, and in a way that really helps people move to primary care and preventative medicine. >> before we get away, sequester, it will cost your state $42 million if it goes through. can you withstand that?
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>> indiana has a very strong balance sheet working through the details of what all of that will mean. the administration has said that they are looking to mitigate that, but, look, this is a great day for indiana. as we talk about public systems and public funding, the real cure for what ails the country is more jobs, and here in indiana, we're celebrateing 1250 new jobs coming from the state, and i want america to know indiana's open for business. >> your buddy, speaker boehner, is coming out. we'll let you go. appreciate it very much. connell: here's the speaker of the house live on capitol hill. >> those who believe that the government -- who don't believe the government has a spending problem. that's the minority leader, the minority whip who don't believe we got a spending problem. the president told me directly back in december, we don't have a spending problem. in the nearly four years since senate democrats last passed a budget, government spending has driven the national debt to over
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$16 trillion. that's more than $5 # 2,000 for every man, woman, and child in our country, and i don't believe the debt is a result of insufficient taxation. this year, the federal government will bring in revenue more money in from the taxpayers than any year in our history. the debt is a result, i believe, of spending that's out of control. i think the spending problem that we have here in washington is threatening the future for our kids and our grand kids, and, frankly, threatening the american dream. the republicans have overred solutions for economic growth and addressed the long term debt crisis, and we will, again, as part of the upcoming budget, deal with the budget in an open and honest way. president obama and senate democrats are demanding more tax hikes to field more stimulus
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spending. listen, republicans voted twice to replace the president's sequester with smarter spending cuts and reforms. the president and democrat leaders failed to pass a solution of their own. it's time they do. my message at the white house will be the same as i tell you today. it's time to do their job and pass a bill. this week, we anownlsed that hr1 is reserved for tax reform legislation. a tax reform that lowers rates, closes loopholes, will help create more american jobs, and promote more economic growth in our country. the president talks about closing loopholes, but only as a solution to fund more government spending. do we want to close loopholes? we sure do, but if we're going to do tax reform, it should focus on creating jobs, not funding more government. last year, we proposed
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generating new revenues through tax reform. we did that as an alternative to the president's demand for higher tax rates. ultimately, the president got his revenues, and he got it his way, through higher rates, and given those facts, the revenue issue is now closed. any revenue generated by closing loopholes should lower rates across the board for american families. that creates jobs and maybes america more competitive. the choice is simple. should tax reform focus more on funneling -- funding government or on creating jobs? i'm for more jobs. >> if the cuts in sequester are not smart, why was there never talk of a bipartisan negotiation to try to replace them? >> the house agented twice over the last ten months to replace these cuts with smarter cuts p.
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we've done our job. the president has not offered a plan. senate democrats have not passed a plan. time for them to pass a plan. >> negotiated with democrats to try to figure something out? >> the house did its job. i'm happy to talk to the president, i'm happy to talk to senator reid, but the way things happen around here is the house passes a bill, the senate passes it bill. we disagree, we have a conference. >> looking forward, looks like the sequesteration goes into effect. are you open to one-on-one negotiations with president obama which many outside analysts feel it's the only way it could be resolve? >> listen, i'm happy to talk to the president. i'm happy to work with the president, but the house has done its job. it's time for the senate to do their job. to every extent possible, follow regular order around here.
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it doesn't happen like it should, but regular order around here is we've done our work. they have not done theirs. the house shouldn't have to pass a third bill to replace the sequester before the senate passes one. >> debt reduction didn't start at christmas time when they got the rev nigh, and the overall debt reduction you have done has been roughly 2-to-1 spending cuts to revenue, why is the discussion closed now? >> the president got his tax hikes. the american economy's going to create more tax revenue than any year in our history. we don't have a revenue problem. we have a spending problem. it's time to get serious about it. >> you're up 2-to-1 already. why is -- you're up 2-to-1, why is -- >> you're talking -- asking a question how much more money do we want to steal from the american people to fund more
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government? i'm for no more. >> calling it the president's sequester and he divided it. if that's true, which you and bob woodward think it is true, how much does it matter because you accepted it and ushered through the chamber and got the signature? >> listen, it is the president's sequester. it was his team that encysted upon it -- insisted upon it. remember why we have the sequesteration and why the president encysted on it. the president didn't like the plan senator mcconnell and i had to deal with the first tranche, the 1.2 trillion of the discretionary cuts and to move the debt limit ouu of here. he wanted to make sure the didn't have to deal with the debt limit before his re-election. this was about his convenience. him not wanting to go through a fight over the debt limit again. that's where he came up with --
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where he came up to the sequester as a backstop to the super committee. >> your responsibility for passing it and accepting the deal. >> it was a negotiation. i didn't like it anymore than anybody else liked it, but when the president told me, and harry reid told me, they'd work with us to get an outcome out of the super committee, i felt confident we would. unfortunate ly, we didn't. >> we heard you say over and over again you did your job, but how do you pass a bill in this congress, and it's not noon on thursday, and the house is going home the day before the deadline. are you concerned at all about the option of not being there and the house being out in >> i'll be here tomorrow. i'll be at the white house accepting the president's invitation to meet. listen, we laid our cards on the table. we've shown that we can pass a bill to replace the sequester. that's why we did it twice.
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connell: speaker of the house, john boehner, a day ahead of the automatic spending cuts when they take effect, $85 billion, and the question and answer session there are reporters in washington. dagen: rich edson has more detail on what he heard and put it in perspective for us. rich? >> the house speaker boehner made it clear as have democrats have all morning and both sides all week that there's no compromise in site. both sides sticking to their guns. boehner saying the revenue issue is close the, no more tax hikes saying how much more money can you steal from the american people to pay for more spending? today, harry reid said the republicans are protecting the demands of the special interest groups not agreeing to close tax loopholes to pay for spending. he called for tax reform, and, basically, said that the president wants to close these loopholes to pay for more spending or pay down the deficit. republicans want to deal with tax reform, and this is the first bill passed in the new house with the hr1 tag, the
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coveted first spot in the house. that's tax reform to get rid of some loopholes and lower tax rates. there's the continued argument there. the bottom line, heading into tomorrow, when the automatic spending cuts take place, you may have congressional leaders at the white house. the senate votes later today, but there is zero movement towards a bipartisan compromise to get it done. nothing is beginning to get through the senate today, and it doesn't seem like anything soon will either. back to you. dagen: rich, thank you for that on capitol hill. connell: more in a few minutes, but shifting gears to another story on fox business, jpmorgan chase holding $2.3 trillion in assets, accounting for one-sixth of the total u.s. banking sector. dagen: the chief there, jamie dimon known as the number obsessed ceo giving him access to an enormous amount of information on the habits of consumers. melissa francis is traveling with mr. dimon is austin, texas
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joining us now with more, melissa? >> back on the road in a famous bus tour. he put on a pair of boots and hopped on a bus to rally the troops from branch to branch here. hard to imagine lloyd blankfein in boots, but it's possible. this is the third time i've been on a bus tour with him, and this time, a few days, of course, ago, he announced cutting jobs, 19,000 over two years and 15,000 in mortgages, and 14,000 in branches like this committing to opening another hundred branches per year every year at the same time. meanwhile, as you mentioned, we are getting a look at their internal proprietary data. this is the stuff they use around the bank to make their decisions about what they will do. of course, they have 50 million customers and a bird's eye view into what everyone is doing. one of the things that jumped from me at the data for a preview is that spending on credit cards went up 13% in january year over year.
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that's a huge jump. i mean, 13% more this year versus last year, especially when you compare that to december, a month when you expect people to be out there spending more. it was up 6% then. we'll talk about what wealthy consumers are doing, high net worth, what regular consumers do, talk about mortgage numbers, everything under the sun. at one o'clock, talking to pablo sanchez, the consumer manager on banking to drill down the interim data you'll only see here on fox business and nowhere else. that leads to the big event, of course, at 5 p.m. eastern time, jamie dimon, the man himself, sits down with an exclusive interview. it's a busy day. >> when you say "no holds barred," that applies to him more than any other ceo in the country. >> absolutely right. dagen: thank you very much, melissa francis, from austin. connell: before we get back to the sequesteration talk, nicole
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for stocks now. jcpenney, a big disappointment. >> there was a crowd around the post this morningment look at where the stock is now, down nearly 18% for jcpenney. it remains to the downside, had a sharp drop in sales, sharpest drop seen since announcing the transformation plan 13 months ago. sales numbers are disappointing, had to do all kinds of things such as mark downs in the holidays, trying to get rid of the inventory. jcpenney continues to struggle and fight and get customers in there, and ron johnson came in to turn it around, and, yet, it's not working that well. it's down 50% thing around and get it is not working that well. we have seen it down 60% over the last year or so. connell: just a minute ago or so you heard from speaker of the house john boehner saying basically what he has been saying, putting the blame for the sequester, the automatic spending cut squarely in the lap
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of the president. to get the other side of it earlier the house democratic leader nancy pelosi had this to say. >> might as well get a pink slip from the office of the speaker and the republican congress. the 750,000 american workers laid off because of sequester implementation. unless the house gop stops the mindless across the board spending cuts, you too could lose your job. connell: ron kristy, special assistant to president george w. bush, of kristy strategies joins us from washington d.c.. this has become too familiar. and republican than democrat, you know what you're going to get. and begin to go into effect. >> exactly right. that was the function last night with a group of republican senators and house members,
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their pretty unanimous. the president has moved the goalpost on revenue and given the presence of revenue he had been looking for. if you actually look at the numbers is not $85 billion, it is $45 billion if you look at is the year ends september 30th, $3.6 trillion annual budget, somehow going to bring armageddon? i don't see any deal coming in the short term between house and senate to bridge this gap. connell: the republican argument that the economy can handle this percentagewise, $3.5 trillion budget and all that, and a word you used a minute ago was revenue which to me this is all about. as much as we talk about spending cuts, the argument is about taxes. are we as the speaker just said a moment ago, are we done with tax hikes? do you believe the republicans not just tomorrow but going forward when we get to arguments about shutting the government
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down can republicans stand firm on that and not agree to raise any more taxes? >> no question. the sentiments i heard on capitol hill this week is done, over, finished, no more tax revenue increases, nomura heights unless we are looking specifically at offsetting the deficit we are doing, deficit spending we are doing. when you hear about tax loopholes, one thing republican members on capitol hill are saying, what exactly are you talking about? the president will say giving breaks to oil companies, millionaires and billionaires, if you look at what you are talking about this for the billionaire jet errors alone, you are talking millions, not billions, not nearly enough to offset the spending problem we have in washington, not revenue. ashley: to give you another perspective because you gave us the washington d.c. perspective and talked about the conversations you were having last night, here in new york it seems like from the wall street types and people in general that there is a collective yawn to all this, people are not paying as close attention as they were the last time around, maybe we
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have fatigue for the sides of negotiations and market shrugging it off, $14,000 on the dow flirting with an all-time high not far away from it, there's no sense of panic. >> there is not. the reason we are at this stage and the market is reacting the way it is, we heard fiscal cliff, a my goodness we will go over the fiscal cliff and the world will come to an end and a couple months later oh my goodness look at where we are with sequester. the thing the markets will pay attention to is not the sequestration that is coming up tomorrow. and the continuing resolution that -- that is going to have more long-term and short-term implications not only for the market but the american people so that is what i have my eye on. stuart: that is when you could be talking and having a conversation about downgrades again, u.s. credit downgrades and things like that so before that one of the reporters asked john boehner about this, do you get back to the, quote, grand
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bargain type talks, tax reform, a quick fix? >> i don't see any grand bargain. i think the house and senate leadership, republicans are going to wait for the president to articulate a budget. i think they will wait for the senate to react to house budget resolution that will come along in the next couple weeks but i do not see any short-term movements by the congressional republicans until they see on paper what the administration and senate democrats priorities are? connell: good at your perspective, thanks a lot. dagen: leaving california to escape the tax man, adam shapiro with a great flight out of the golden state. connell: we have google versus granma. the replacement for kids looking to learn about history. dagen: gramps and granny don't want to talk to the kids because they're not it's. hot off of his big daytona 500 win, jimmy johnson on the track this weekend and next weekend
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and the future of nascar and a little bit of dancing too. take a look at how treasuries are doing today, 1.89% is the ten year yield. unbelievable how cheap it is for uncle sam to borrow. let's we know all your investments may not be with fidelity, but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounk and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
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diane: it is the international monetary fund realizing it will cut the growth forecast for the united states and the global economy. the automatic spending cuts take effect in the u.s. tomorrow. the imf says the biggest trading partners with the u.s. are going to be the most affected by the impact of the so-called sequester. the automatic spending cuts would trigger u.s. credit downgrade but failure to raise the statutory debt limit almost certainly will. a new report from the federal reserve bank of new york show young americans having a tougher time repaving college loans. 35% of people under 30 were 90 days late on their student loan payments at the end of last year. that is up from 26% in 2008. that is the latest from the fox business network giving you the power to prosper. [ male announcer ] you are a business pro.
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connell: california bad for business, it is what rick perry, governor of texas said during a recent recruiting trip out there and pointed a finger at the state's high tax burden in doing so. dagen: adam shapiro live in palo alto, california with more of the tax flight out of the state. adam: it is not just taxes that sees opportunity, arizona and virginia have offices here, fairfax county, va.. offices in california to help stage businesses relocate or open new offices in their states. jerry gordon is head of that in fairfax county, va.. here's what he told me about why companies consider leaving california. >> california is in danger of losing more companies, they lost a lot already.
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we have had -- i see cfc held worldwide, northrop grumman, corporate headquarters to fairfax county in the last three or four years. it is not just because other states and other counties trying desperately to attract those companies, calif. needs to do things, tax burden and education and safe neighborhoods. and easy to accuse someone else of stealing them you have an obligation to do those things which would keep him in place. adam: here's what northrop grumman told us, we moved our quarters for facility considerations to be closer to our customers and overall economics. as part of the relocation we reduced corporate staff and consolidated facilities. why do companies tend to move? it is a rare phenomenon when you get a company leaving the state.
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california sales tax versus virginia sales tax, california 7-1/4%, va 5%, 44th in the united states. put the company's they're relocated to virginia, hilton worldwide, northrop grumman and verizon and one last thing, the corporate tax rate, calif. 8.4%, va 6%. at an end of the day when you speak to economists they will tell you 1 a motivating factor for a business is the cost of labor. we are going to address that issue when we speak to one of the recruitment officers from arizona and why they have been successful getting companies to expand in their state and not in california. dagen: the people in virginia, and meantime grandparents may have trouble passing on their wisdom to younger generations. a new study revealed 90% of
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children turned to the likes of google, youto ben wikipedia to learn tasks like ironing and selling rather than asking grandparents. 80% felt they had less contact with grandchildren and their grandparents. good to google for history. when you rare wrinkly clothes. connell: looks like facebook may be turning into a place. and online commerce if you look at a recent report on line facebook retail stores should be's 260% increase, and before jim o'hara, up company helps facebook and amazon and ebay and others, you don't have a lot, and facebook won't turn into amazon but what is happening?
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>> consumer shopping behavior is changing rapidly and becoming increasingly more social. 44% of consumers surveyed using facebook for product discovery and 57% of the same u.s. consumers say they would most likely seek advice from facebook friends before making a purchase decision. connell: somebody buys a song or something or listening to this song, then you take into a parallel retailer, i like this pair of shoes and someone else comes in and buys them but will other places -- i mentioned amazon, ebay and other companies, will those companies adjust to become more social as facebook takes their business? something that is already happening or may happen? >> our goal is to let retailers sell, where customers shape
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online and the consumer dictates which they knew they prefer. connell: you could be buying from amazon, and wherever the link takes you and where you are buying but what are the biggest trends you're seeing in terms of what type of shopping that might make sense on facebook. and would it ever turn into a place where you can do a lot of commerce online, which types of retailers really excelling and do well there. >> most of our customers are small retailerr, smaller retailers get the difference between selling and websites and selling socially on their facebook page where it is all about developing a fan base and building communities around your product on facebook. one of our top sellers on facebook is a woman's boutique based in illinois where they have a physical storefront and a website store and their face
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bookstore and more than half of their revenue comes from their face bookstore and the secret to their success is communicating with their customers on facebook and building personal relationships with them like they do in there to the cool storefront in illinois. connell: that makes sense for a small business. good stuff. jim o'hara, thanks for coming on. dagen: stocks with nicole petallides, today's biggest movers. nicole: we are not far of a plea 5-year highs, some names on the move. in some retailers for example. that is one of the biggest in the s&p 500. kohl's is right there along with it. can compare one to the other. they're in the top ten losers in the s&p 500. zynga pulling back after a great week, 5% on the talked about legalized online gambling, seers pulling back, tough quarter, still facing an uphill battle.
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the best and worst of the dow jones industrials. back to you. dagen: thank you. connell: dagen mcdowell in all glory talking about money and nascar with the daytona 500 winner jimmy johnson. dagen: motown. connell: the interview straight ahead. ♪ ♪ [ male announcer ] it was designed to escape the ordinary. it feels like it can escape gravity. ♪ the 2013 c-class coupe. ♪ starting at $37,800. ♪
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dagen: a pretty good week for nascar champion jimmy johnson, lows just extended its contract as his primary sponsor for the two years. sunday he won his second daytona five hundred. since his first five hundred victory in 2006 his best finish in the raise was 27th. i asked jimmy what he did differently this year to get
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ready. >> since 2006, i survived but the type of racing was pack racing and shortly after that, things changed. the rules change, the tandem draft came into effect and i had bad luck through a majority of those years. the tandem drafting is no longer affect, we're back to the old-style 2006 style of drafting and it worked, i survived, to be ahead on the racetrack, the wrecks that took place and kept track position. that was the biggest strategy change i made. with this will package it is to pass and i fought for the lead every lead candidate of. dagen: what kind of racing will you see in phoenix and las vegas after that? >> i feel good about it. i think phoenix will be good. it is a new surface and new surfaces usually lead to a single racing. las vegas is going to be really big raise for this car and what we hope the car will do week in
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and week out. wide track multiple waynes, high speeds and the comfort they build these cars with the new body shape and design should allow us to be courageous and drive in the corner harder and get to the outside of someone and mix it up on the racetrack. dagen: the ratings were up big time for the 500 deaths of 24% a lot more in major markets including new york and los angeles. this danika patrick need to perform well to keep viewers? >> her performance is important. shea hopefully brought a lot of casual fans in and made the hard core race fans. we are hopeful of that. we have a very exciting year.
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manufacturers are showcasing their stuff we saw signs of increasing commercials and all the goes with it going the right way and still writing that momentum. should carry through a great year. dagen: speaking of the year ahead, you got two last year. do you have any plan this year? sell much focus on one female driver, if you produce more beefcake shots, it does quite well for additional female draw, what do you have planned? >> i am not sure it is going to be deep. dagen: you look pretty cut after that first triathlon. >> it has been fun. i enjoyed endurance training and ran two weeks ago and broke 90 minutes. i was excited for that.
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hopefully i can get to 5 can find some down time and do have iron man in a full someday. dagen: one thing you can do that well is dance. >> i don't know about this. [talking over each other] >> it was supposed to be a photo shoot. and everyone will enjoy it. dagen: thanks to jimmy johnson, and the video talking about, after the victory. ♪ dagen: this was after the victory sunday night. this was a small way of partying, i would say. jimmy can't stand that well but neither can i. ashley: and a few iced teas, celebrating the victory. dagen: lots of sugar in it.
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you know what? when i said six pack because that is jimmy's hash tag for his championship, the crew members fought on was talking about his abs which ought i was not. dagen: looked at me during the taping and said he called security. and the race this weekend is 3:00 p.m. sunday on fox. connell: we are going to talk about a big disconnect having to do with nascar, it has to do with the markets. the dow rise you see by the chart is hanging around closing in on an all-time high but then you have these automatic spending cuts starting to take effect tomorrow and nobody seems to care. dagen: sandra smith, charles payne and david asman sort it out coming up with two all-stars, dennis and tracy. all those fine folks on set.
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raise in a time tracy byrnes. dennis: i am dennis kneale. the dow for the all-time high, a bull says the market party will roll on as long as ben bernanke and the fed don't pull out the rug. tracy: the dow closes in on that all time high, automatic budget cuts are about to hit. fox business all stars charles payne, sandra smith and david asman are here to sort it all out. dennis: we are live in the golden state where arizona is the next state to set up to lure away business. tracy: time for stocks as we do every 15 minutes, nicole petallides on the exchange, the
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dow is on fire. nicole: we are doing very well continuing to hold onto gains for the week and here we are, up 9 points. we have unaccommodated said, and we hear from mario draghi and we're seeing markets holding on nicely. we had mixed economic data as far as jobless claims, and at&t and duponts doing quite well. and the best of the bunch up 1/4%. the big picture is so far so good and we trend higher, that is the tune of wall street at least recently. dennis: thank you very much. depending on where stocks are going, jim for showing joins us now. ben bernanke just put in a tour they force performance that will
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send stocks up from here. >> the market stalled and rallied tremendously, and sequester. or the biggest stahl point, the apparent dissent in the fed. and declarative as we have seen them and benefits of the stimulus. an extraordinary support to the market, talking about the rest. dennis: when stocks rise on a loose money policy is because we know of the cheap financing is helping the economy or because we know stocks go up or lose fed? >> these stocks may not necessarily be indicative of the economy and mainstream. the company reporting better earnings, easy monetary policy, a driver of that as a key factor. the idea to load up on sheet-or
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fund their business or grow their business, and one of the reasons the markets are performing the way they are. dennis: companies have wiped out $100 billion of debt, corporate bonds going out at tiny interest rates, the treasury rates are so low, don't have to go that much above them but are we net/net increase in a lot of debt burden and by this? >> i do believe right now the biggest risk we're seeing is not necessarily credit risk but interest-rate risk. when the fed tries to exit and will need to exit, we have to see the ramifications of an unprecedented reversal. can they do in a timely fashion, the chairman says he can but he is in uncharted territory but we do believe we have to pay for this at a later date but i wouldn't bet against the chairman. dennis: the set is worried about inflation. is it the effect of higher prices, worried that we consumers will start changing our behavior in advance of it in the same way, will investors
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start to change their behavior and get scared way in advance of the fed raising rates? >> every time you see dissent among the fed use even naysayers, that spooks the market. in terms of consumer behavior, one of the ideas here is stock market rallying, housing market improving, people feeling better about the value of their portfolio and value of their home, does that give the chair -- the courage to start spending? we will see some uptick in durable goods and autos, it is starting to take hold that the consumers feeling better about themselves to get their assets, the home and portfolios have appreciated. dennis: don't the markets and traders overreacted the notion of a fed increase, let's say they go up 1/4 point. i don't see how that hurts the economy at all. >> i don't think it would accept the message of what is coming back and is it open ended and raise by a quarter and done for this period of time, on the upswing the market has embraced the chairman's believe that we
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won't change policy unless the labor market improves and that gave people the confidence of being in this low interest-rate environment for period of time. if all of a sudden he advance is a little bit with no clear message the market might be spooked by that. dennis: if i am a daughter and think there is no way the fed can manage this exit, what do i do to protect myself and when do i do it? >> right now i think about the housing market, there were many bears in 2004-2005 and 2006. that you exited then, you would probably not be able to keep your job as a portfolio manager because you were early. and that is the dynamic we are dealing with, when do you sort of shift your asset allocations to protect your portfolio. if you do it now you are pretty much more. dennis: we will hold on to that. thanks very much, good job. tracy: one they left for congress to step up and avoid
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the round of massive automatic spending cuts. leaders on the left and right are clearly at odds. >> democrats, we want solutions to sequestration. some have even called it a home run. that doesn't sound like anybody on team america if they think sequestration, indiscriminate mindless cuts across the board are a home run. >> i am happy to talk to the president and senator reid but the way things happen around here is the house passes a bill, the senate passes a bill. if we disagree we go to conference. tracy: join in this is chief economist mike duker. the market could care less. what is going to do? we all know at this point come tomorrow the world is not going to end. we will see this over the course of the next couple weeks. will derail the market's? >> the market has priced in
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sequestration which will announce to 0.6% gdp will be additional funding from sequestration. the market is priced that in. it is important to remember we are facing the rest of the fiscal cliff, the biggest threat of all was complete expiration of the george bush tax cuts for 100% of americans, the new year's eve agreement continue the george bush tax cuts in their entirety for 99% of americans. the sequestration is a smaller piece of the pie. tracy: we're talking $85 billion in total for this year, $46 billion will go to defense. again clearly the market realizes we don't have tt cut jobs, we don't have to cut big things like t.s. agents, we can cut the travel budget instead. >> there will be some effect on the cuts, i am sure in some sense there will be some
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grandstanding to make it sound like they're very onerous on the average american, but they are not going to be huge. we have reduced our real gdp growth forecast from the beginning of the year from 2.1% for 2013 to 1.9% and if you look at the consensus, the decrease in the forecast has not been very large. people are projecting average that the economy will produce 165 to 170,000 nonfarm payroll jobs per month and on average in 2013 this will not derail the expansion. tracy: and expansion i think we ought to use that word loosely, our fourth quarter was revised down, markets were not entirely tickled with that. jobless numbers are not great, unemployment is out there. what keeps you up at night going forward with this economy? >> you always worry there could be a negative shock that could knock gdp down but it is
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important to remember just because we're in a slow-growth mode doesn't make recessions more frequent than we have seen in the past. think of recessions as being a shifting gears in the economy. because cruising speed is a little slower doesn't mean we are that much more likely to shift to a lower gear. tracy: what are you telling your clients to put their money in this lower gear market? >> equities seem to be the best asset class out there bar none. if you look at projections for increases in by yield we project them to be very gradual and not sudden or dramatic that would cause a belief the fed is behind the curve. we don't expect the fed to be perceived as being behind the curve or big inflation to come out of the fed policies, but still equities, everyone wants and equity risk premium, everybody wants that. tracy: that is where the fed wants you to go. thank you so much taking the
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time. fox business all-star budget cut edition is coming the. don't go anywhere. at the bottom of the hour charles, sandra, david on why the market seems to be ignoring washington's complete inaction. dennis: the pope officially stepping down in a couple of hours but in won't believe how big the retirement package will be. tracy: the big business of spring training. we are live at fort myers, fla. talking baseball. dennis: as we do every day at this time take a look at will. dad, i'd put that down. ah. 4g, huh? verizon 4g lte. 700 megahertz spectrum, end-to-end, pure lte build. the most consistent speeds indoors or out. and, obviously, astonishing throughput. obviously...
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dennis: it seems inevitable now that the automatic spending cuts are kicking in tomorrow, what happens when they do? will they're still the planes in the air and the government open for business, peter barnes is in the belly with a breakout of who gets hit first. peter? peter: trillions of dollars of government spending is exempt from the sequestered. of medicaid, social security, veterans affairs budgets are exempt and the white house is carefully wording the dire warnings, ann and the jobs of 10,000 teachers would be put at risk by the sequester, 72 ended special-education sectors and staff could be cut. and how the president wants to
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order detailed spending instructions. >> and union notification, and most of the stuff will happen over the course of march and april. and some distance in west virginia to get you notice and an earlier notification date. >> the washington post is reporting that school district in west virginia is sending transfer notices to 100 teachers in response to a change in federal spending that is totally unrelated to the sequester. and whether it is sequester related auto. dennis: thanks very much. tracy: indiana and governor mike pitts said it will create the
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world's largest transmission installation complex in his very own state. jeff flock is live from indiana with the details. is so cool. jeff: is a huge announcement and i have the chairman, ceo, fiat and chrysler, the biggest transmission facility in the world here. >> by far. >> over two million transmissions. jeff: you are expanding at a time we have a budget sequester going on. do you know what the sequester is, do you care? >> i do know what sequestering is. it doesn't apply to chrysler because we continue to invest in an incredibly viable business and we have that decision four years from now when we started
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this recovery plan. and chrysler uniquely positioned in the u.s. and international markets. dennis: you worried will happen with the economy with the sequester? does it concern you at all? >> when we last met on this issue -- the ability to resolve the issue. i understand, part of the ritual that needs to be done. and an negative impact on volumes and the united states in 2013. jeff: you come from italy, where the political situation is the most stable in the world. >> i come from a variety of places including a permit. there is not a single doubt that italy is going through a difficult time, and the inability to resolve the political leadership issue in
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the nexx phase of governance, and some apprehension, and a resolution to go forward. it is unfortunately ended up in this place. we need to make the best of what i consider an undecided election. we need to get it done. jeff: on the subject of a potential ipo, what would you put the chances of that and you most recently used said you would be willing to buy as soon as you can afford it. how soon can you afford it and how soon do you think? >> there is 100% likelihood that chrysler will filed the ipo.
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the ability to execute to avoid the ipo and effectively create one organization which is an objective, the best estimate is 50/50, a lot of it depends on what we are told by professional people the ipo might yield, and estimate the call but we are in an early process. and early stages of a multi month undertaking, and we have to change ourselves, and all these things happen in relatively short order. jeff: i will leave it there. obviously a lot of people want to talk to him at this point but that is breaking news just so you know. 100% that they will go forward
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with the ipo whether it comes to full execution or not. that is another matter, breaking news from sergio marchionne in addition to breaking news of the largest transmission facility in the world being created here in indiana. tracy: only jeff flock can get it under those conditions, thank you. dennis: that was really good. california, there i go. arizona trying to coach away businesses from the golden state and we are live next in palo alto with the arizona officials making that ridge. tracy: call them the boy's of string, fort myers, fla. for the big business of spring training. as we head to break, the dow is up eight points. let's see how world currencies are faring against the u.s. dollar. we will be right back. [ woman ] if you have the audacity to believe
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>> 22 minutes past the hour, this is your fox news minute. former italian prime minister sylvio berlusconni the focus of a corruption probe, being
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investigated for allegedly bribing a senator with almost $4 million to switch parties and support him in 2006. his attorney says it is groundless accusations. he and his party came in a close second in this week's four way e. election and failed to form a new government. pope benedict xvi promising unconditional reverence and obedience to his successor. in his farewell speech the pontiff said the future pro is among you. the cardinals are expected will expect a conclave to choose the next pope. secretary of state john kerry says the u.s. will help syrian rebels with $60 million in nonlethal assistance, medical supplies and food will go directly to syrian rebels for the first time. the d.a. does not include any weapons or armored vehicles. those are the latest headlines. dennis: tax flight from california. rising taxes and the golden state sending some businesses
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fleeing. adam shapiro is live with representative of one state trying to snag some businesses. >> arizona and virginia have offices right here in california to help businesses that might consider relocating or expanding for other states. joining me to think of why they're doing that is the president and ceo of the authority, thank you for being on fox business. over the next couple usable dropped 30%. california corporate tax rate 8.4%. businesses coming to say there is relief to get us out of there? >> talking to numerous businesses in california looking at expansion opportunities and environment in which they can succeed. and open for business. we have a very pro-business tax environment. and very active and develop a very aggressive strategy to enhance business opportunities
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in arizona. >> we have shown businesses which have expanded into arizona, one we didn't have on the list but made a huge commitment is intel, $3 million investment research and development center and if i ask you why they would do that, the price for single-family home in phoenix, $159,000, in san jose, $535,000, the number-1 reason from our research that businesses move they look at taxes but it is the cost of labor and the cost of labor can be reflected in the cost of housing because you pay your employees more if they have to pay more to live. is that one of the ways to get to expand into chandler? >> intel and other companies in arizona continue to expand in arizona because of the quality of labor they find in arizona. in addition, we have a tax credit in arizona, one of the best in the country offers opportunity for us. adam: the cost of doing business in california vs. arizona,
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phoenix, the courage to real-estate per square foot, $20.35, san jose, near san jose, $251.09, recent survey of business leaders, 62% said the state is difficult in which to do business. you see an attractive right territory for the pickings. the discussions you are having with businesses, what are they asking? >> they are talking about business climate number one, most important labor, in arizona, quality labor in arizona, they're happy with the labor and talent. adam: in our research, as businesses really jump state to state they will expand in other states and to sometimes jump. 1 motivating factor is the cost of labor. one of the threats in california is the middle-class and lower income thresholds are moving out
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of california. eventually the cost of employing people will go a. that is something we will talk about. the lieutenant governor of california coming up later on fox business. right now i will throw it back to you. tracy: the dow closing in on the all-time high even as those automatic budget cuts are about to hit. fox business all star charles payne, sandra smith and david asman will tell you about the fallout ahead. dennis: the pope leaving his post, the details coming. tracy: as we head to break the dow is up nine points, s&p 500 winners, monster beverage up top 5%. we will be right back.
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>> bottom of the hour, time for stock, annie -- annie coal is on the floor. we have lockheed martin newses today. >> we are. we are focused on washington with the sequester upon us, talking $85 billion in cuts that could be looming, and, of course, defense is, obviously, a big huge part of this, and so here's a look at lockheed martin. stocks not moving much, but worth noting the companies says the programs could be materially reduced, suspended, or terminated as a result of the government's practices and priorities we've seen. they noted the revenue for 2013 could decline from 2012 by more than mid single digits by percentages if the sequester
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takes effect. obviously, we knew, defense, obviously, would be the sector hit, and lockheed is making that known. back to you. >> thank you very much, nicole. fox business all-stars budget cut edition. the clock ticking down to the automatic budget cuts, but traders say, "so what?" what's going on here? >> joining us, the fox business all-star panel. santa drit, david asman and charles payne in studio. sandra, you first, girl. the market is ignoring this. not at the races like yesterday, but nobody seems to car. >> one of those things, i talked to a trader, and he says if you go to the doctor and says you'll die tomorrow and you wake up on saturday morning, you'll be happy. washington cried wolf, the fiscal cliff talks, it's been something, the debt ceiling, and now it's the budget cuts.
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the market's not buying. they have an obligation to be in the market. those who missed the rally in 2012 fear missing this one. they stay in the market despite the fear mongering staying in washington. >> do you think it's for real, or do the traders have it wrong? >> it's for real. it's not based on america, but global prosperity that's never been seen before. saturday, look at the top stocks, and there's priceline, international, global, international, nonsteer growing outside the country. chicago prison iron at a new high. they got a contract in moe mozambique, oil deal, deals in australia and denmark and in the north sea. this is happening around the world. while the rest of the world tries to get where we have been the last 1 # 00 years, and we're killing ourselves, this is what stocks wosh from -- work from now. you feel traders no longer believe washington. the obama administration selling
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the cuts, didn't schedule a meeting until friday. >> there's a political price to pay. it will affect the economy eventually, but that's the fear mongering has not worked. the panic talk is not working by the president. you see it in the markets. you see it in the regime attitude. the president tries to make the cuts painful as possible to prove the point, the $85 billion could trigger recession. what's likely to trigger recession? ask a trader taking $160 billion out of the private economy, which he did in tax hikes, or taking $85 billion out of a bloated government? what is more likely to trigger recession? i ask you. >> but, sandy, you made a point, a trader's job is to be in the market and make his or her clients money; right? and so as a result, there's no choice. you got to figure out a way to do it. >> and guess what? they see the fed as a major backstop that's artificially propping up the stock market so while i agree, charles, a lot is
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international prosperity and growth in international company and stocks right now, it's right here at home where we are propping up the markets every time we get a bad piece of economic news. guess what? off to the races for the stock market going higher because they know ben bernanke steps in, keeps interest low, and continues the easy monetary policy that props up the stock market. >> i think you're absolutely right. that's what's fueling the market. no question about that, but there is pushback against what ben bernanke is doing like i've never seen before. he tried to dismiss that yesterday in congressional testimony by suggesting that richard fisher and the others who were against this easy money were in the small minority, but that, it is a minority, but one that's growing. you see in the popular press now, time magazine r, saying the fed appointments its into a corner. former liberal supporters are backing off now. there's pushback against ben bernanke. >> but, charles, it's political push back; right?
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to see traders could give a damn where the money comes from. >> he spoke in washington, and dow was up 300 points in that period. it is something of a backstop, but what i fear is that people watching this show have so -- they have -- they are always so skeptical, so afraid of what they hear talk about so much that they missed the dow go up 100 mc. they don't own chicago bridge and iron. >> don't trade on your ideology. that's important. >> i do agree. what about the notion that the market likes sequester? yes, maybe the market likes the idea of fiscal sanity. >> and stopping spending. sandy smith, companies have to decide stock prices are cheap. there's something like the 70 companies in last three months announcing $100 billion in stock buybacks. >> hey, stocks are on sale. people buy them. the vix, there's complacency in
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the market. there's not a rush to the exit and fear in the marketplace. the vix is the fear gauge of the market. it's down three straight days leading up to this. investors are clearly showing they are not nervous. they are not pannished as much as washington tries to make them feel that way. bottom line, walk on the trading floor, and they tell you this is not that big of a deal. $85 billion while spending continues to go up in the country. what is this mean? what is it going to do? >> i think that's to sandy's point, why the market cares less. charles, to yours, the little guy's not in. it's going to take -- i mean, god, a mountain to move them back in because every day there's going to be a new scare, a new fear, europe's back, who knows what, and all grandmother thinks about is saving for her retirement. >> unfortunately, here's what i tell people all the time. you love the product, tell five people about it, you're a de facto salesperson. the hundred billion to your
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point, if companies believed in america, that would be capital spending. the administration pro-growth policies would be great, but until that happens, we're in this. >> i think tracy's got the point. we still have not wiped out the fact it's a rigged game, and retail investors are not coming in at the height of the market. >> i have to step in here. nothing is harder than wrapping a fellow tv journalist. thank you very much. [laughter] >> that was great. all right. the endless frontier. remember 1999? i used to watch that. up next, the first private company hoping to send a man's mission to the moon. >> let's look at ten-year treasuries. ♪ [ indistinct shouting ]
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♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪
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you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. >> i'm lauren with your fox business brief, 20 # 12 has a fewer foreclosure related sales since 2007, but levels remain higher than they have been before the housing market bubble. nearly 950,000 properties either in foreclosure or bank owned were sold last year. mortgage rates moving closer to historic lows falling for the first time in six weeks according to freddie mack, the average is 3.51%.
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the new report from the federal reserve bank of new york shows young americans have a tougher time repaying college loans. 35% of people under 30 years old were at least 90 days late on a student loan payment from last year, up from 26% back in 2008. loans jumped by 11% in 2012 as other types of bow -- borrowing fell. that's the latest from the fox business network giving you the power to prosper.
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>> spring training in full swing for the boys of summer. it's not all fun and games, but big business. florida's economy takes in $7 million from tourists at each site that hosts a team. the twinning and red sox have training in for the myers where we find steve. >> matching starting lineups between a game with the betweens
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and orioles. it's 75 degrees, you and you smell the hot dogs to the right. towns in florida battle each other to host a team for spring training in what has become a major industry. it began as a fat farm for baseball players, 125 years later? the drills the same, but the business model has changed. >> six weeks of commerce means that they are going to make a lot of money come spring training. >> a billion dollar a year industry with fans coming to florida from across the nation. >> great parks, by the way. >> paying for something not easy to find today, intimacy, professional sports. >> when we were young, and i'm bringing him now. >> lee county is home to the boston red sox and minnesota twines. government studies estimate fans spent $50 million a year in the local economy. >> souvenir program! >> no surprise there is a wider
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competition for towns hoping to host a major league team. >> there are more communities thatment to host spring training than there are teams. the teams ask for the moon, and there's going to be a community that gives it to them. >> the battle already goes beyond florida. in recent years, arizona has coached 15 teams, now florida's governor says that the state needs a new strategy to prevent spring training games from leaving florida. back to you. >> 75 degrees. well done. thank you very much. >> thank you. >> quarter until the top of the hour, stocks every 15 minutes. nicole at the new york stock exchange opening up pandora's box. >> oh, yes. the pandora stock, today, down 5%. in the last few moments, accelerated a little bit. what we look about with pan pana media, you think of interpret, radio, and the like. they battle the rising royalty
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rates, and as a result, they are making a call here, and had a conversation, the company says that it would cap the availability of free music on mobile devices. how much? well, 40 # -- hours a month to offset the rising costs for royalties that they in turn pay. just the fact you get free music at all is something of the past in itself, but they are going to cap that on mobile devices at 40 hours a month. back to you. >> thanks, nicole, see you in 15 minutes. all right. a group of former nasa executives shooting for the stars with the latest adventure hoping to be the first private enterprise to send a manned mission to the moon. joining us, this week's on the road, allen stern, president and ceo of golden spike. thank you for being with us, you went out on your own, private basically, and let people take rides to the moon.
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>> that's right, tracy. there's a team of us that are former nasa, aerospace, putting together the world eats first private lunar transportation system in making it available for nation, science agencies around the world. >> so let's give people the facts here. $7 billion to $8 billion is what it costs to get the first mission up to mars, and there's two seats on the old rocket ship; right? >> that's right. we'll be able to do individual missions for lower costs than the first one, obviously, because we have to develop everything. >> sure. >> the individual missions sell were a billion and a half dollars, much the same price that science agencies and space agencies spend today to send robots to the moon. >> right. i get the notion of selling it to countries that can't afford their own space program, and nasa's probably very supportive of this because they could use the help at this point, but are you expecting, you know, corporations to send executives on a joyride?
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>> no, we're not looking at space tourism as the market area at all. we think some corporations will be interested for marketing purposes, wrapping sales campaigns around this thing, but it's primarily a business for foreign nations to be able to put their own people on the moon. >> i know you have heavy weight supporters like newt gingrich, former new mexico governor, bill richardson. why do you think they put their weight behind this? >> well, they are supporters of strong american aerospace sector, space commercialization, and, you know, a rising american enterprise like our les that really leads the world in space exploration. >> where are you getting the $7-$8 billion for the first mission? >> great question. primarily through advanced sales of the expedition. countries can approach us, science agencies, corporations, we have a sales agreement, and we're going to be opening the doors for that shortly, but, in addition, the public can take part. they can go to the website and
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have a look at starts this themselves. >> i can put the company's low go on the side of the ship? >> absolutely. the marketing rights, the advertising that'll go on the television networks during these missions will all be available for sale. the part of the package that we put together along with the flight system for the missions. >> you know what, sir? i hope you bring the coolness back to space programs again because right now, our kids, today, they don't want to grow up to be astronauts, and i think they should. alan stern, thank you very much. >> thank you. we will. >> it'll be like another sporting event to watch, like, the next mission to mars. >> sure. >> it'll be cool. >> okay, i'm with ya. pope benedict's last hour of reign. how good it is to be the first former pope in centuries. his retirement package break down next. >> oh, let's take a look at the winners on the nasdaq today
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heading out to break. monster beverage up top again. we'll be right back. ♪
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>> i love that logo. can jcpenney be saved with help from one of the guy's, ron johnson, built apple as one of the best retailers in the world, having a tough go trying to
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glitz up jcpenney. it's on a half billion dollar loss, and johnson is getting advice from an infamous name, the man behind new coke, a formula tried, and he knows how to recover from a mistake, advice ron johnson can use. here's a bright spot for the retailer. penney had one of the five most effective ads in the oscar show sunday night. hyundai was first, jcpenney fifth. those scores from a maximum 950, and over 500 is considered good. there's a green screen protest by visual effects artists in hollywood. this green screen used in digital effects appears on some blogs and twitter posts. upset about job cuts as studios get tax breaks and cheaper talent overseas. >> jcpenney ad the preppy one with the girls in the jackets
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and shorts? >> yeah, i think it was. >> there you go. with just a little and hour left in pope benedict's reign, we wantedded to look at his retirement package. he'll receive a monthly pension of $3300, and the church covers his living expenses. the convent is refurbished, with cooks, and the average retiree is $1200. that's not perspective. he's the pope. >> they don't talk directly to god. >> yeah, speaks like nine languages. >> that's not lavish. the royals in britain do better. >> he's going to pray and basically live like a monk. >> yeah, apparently. never got the red designer shoes. stock market toying with an all-time high, and, still, full market coverage with ashley
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webster and lori. plus, lou dobbs. >> ash, i was thrown off, you were supposed to be with me at two! lou dobbs talks about the washington hype, what happens if the sequester hits tomorrow? nothing? don't go any where. ♪
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